Answer:
$0
Explanation:
This transaction classifies as a § 351 exchange since Mr. Bass is exchanging his asset for 100% of Corporation C's stock.
§ 351 establishes that no gain or loss must be recognized when property is transferred in exchange for stock in a corporation. In order for this exchange to classify as § 351, the new stockholder must assume immediate control of the corporation as established by § 368 (c). This means that at least 80% of the stocks must be exchanged.
Answer:
$49,000
Explanation:
Missing<em>"Cash Event => Cash Paid for Salaries Second Number => _____ __?___, ______ ______ ______"</em>
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Cash paid for salaries (using direct method)
Particulars Amount
Opening salaries payable $5,000
Add: Salaries expense for the current year $57,000
Less: Closing salaries payable <u>$13,000</u>
Cash paid for salaries during current year <u>$49,000</u>
If a buyer exercises the right to rescission, the time that the developer has to refund the buyer’s money is 45 or 60 days.
In settlement right to rescission has been described because of the unmaking of a settlement between parties. Rescission is the unwinding of a transaction. This is achieved to bring the parties, as far as viable, lower back to the location in which they have been earlier than they entered into a contract (the fame quo ante.
The right of rescission is a felony safety beneath the fact in Lending Act (TILA) that allows you to cancel positive mortgage agreements within 3 days without any monetary penalties.
The reason for rescission is to restore the status quo ante, ie the state of affairs present before the agreement was entered into. While an agreement moving to identify assets is rescinded, it typically has the effect of re-vesting any property so transferred to the transferor.
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Answer:
1. Cash Disbursements for manufacturing overhead = Variable + Fixed - Depreciation
Variable = $1.40 X 8,300 = $11,620
Fixed = $92,130
Depreciation = $19,820
Cash Disbursement = $11,620 + $92,130 - $19,820 = $83,930
2. Predetermined Overhead Rate for July will be inclusive of depreciation as that is part of factory cost and will form part of product cost.
Total factory cost = $11,620 + $92,130 = $103,750
Total hours = 8,300
Overhead Rate = $103,750/8,300 = $12.5
Answer:
When a price ceiling is imposed (or any price ceiling at all), the only way that it doesn't affect the economy is that the price set was actually equal to or higher than the equilibrium price of the market.
I suppose that since an oil embargo was put in place, the quantity supplied of gasoline would decrease severely affecting the equilibrium price and increasing it. Once the equilibrium price is higher than the price ceiling, then its negative effects will be noticed (e.g. deadweight loss).